Small Businesses, Sole Traders & Partnerships
Our Small business team at Gibson Hewitt are highly trained professionals who will look into finding a solution to suit the requirements of your small business. Your business situation will be analysed from every angle in order to find a workable debt solution, allowing you to remain in control and continue to run your business.
What can happen if I am a Sole Trader or Partnership?
If you are a sole trader or partnership, you are personally liable for all of your business debts. This may mean that you are at risk of having to sell your personal assets, even your family home, in order to pay your creditors. On top of that you could personally be made bankrupt!
If you think that your small business could be at risk, or if you are just beginning to see the signs of having cash flow problems, get in touch with us today and ask to speak to the small business insolvency team.
What can happen if I am a director of Limited Company?
If you are a director of a limited company, legally you have limited liability for company debts. This means your personal assets are protected and will not have to be sold to pay off your creditors. However, there are some instances when this is not the case. The first is a Personal Guarantee. A personal guarantee means that you have agreed to personally be liable for the company debts. The second is wrongful trading. If as a director you know, (or should have known) your company cannot pay all creditors and you allow trading to continue, you could then personally be liable for company debts. Lastly, if your small business enters into administration or liquidation, your conduct will be reviewed by an appointed officeholder who will decide if you acted appropriately as a director. If you are found to be negligent it could result in you being unable to act as a company director for up to 15 years.
If you are worried about any of the above please act now. Call and ask for our small business insolvency team. The sooner you act the more chance you have to continue running your business.